Payment of Premiums
The payment of premiums for social security and contributions to the state employment policy is governed by Act No. 589/1992 Coll., on premiums for social security and the contribution to the state employment policy, as amended. The self-employed person pays:
- pension insurance premiums,
- advances on premium payments or supplementary premium payments,
- sickness insurance premiums provided the insured are participating in it voluntarily.
Advance Premium Payments
The advance premium payment for a calendar month is due from the first to the last day of the calendar month for to which the premium is paid.. The advance payments are paid for full calendar months and are 29.2 % of the monthly assessment base.
Amounts of advance payments in 2021
|Type of independent activity||Minimum monthly advance payments|
|Major||2 588,- CZK|
|Subsidiary||1 036,- CZK|
The minimum amount of the advance premium payment is determined from the assessment base which equals 50 % of the average monthly income from an independent gainful activity, after deducting expenses, attained in the previous calendar year.
A self-employed person who attained the maximum assessment base from employment and reports and proves this fact to the DSSA is not obliged to pay advance premium payments from that month on.
Pension Insurance Premiums
Pension insurance premiums must be paid by every self-employed person who in the preceding year:
- carried out a major independent gainful activity,
- carried out a subsidiary independent gainful activity enough to participate in pension insurance,
- carried out a subsidiary independent gainful activity and registered to participate in the pension insurance scheme.
The premiums are 29.2% of the assessment base. The self-employed person him/herself determines the amount of the annual assessment base for premium payments.
The lowest assessment base is determined as 50% of the tax base (under the Income Tax Act). The minimum assessment base is amended each year by a Decree of the Government and differs for major and subsidiary independent gainful activity. In both cases the months during which the self-employed person was entitled for the whole month to sickness benefits from the sickness insurance scheme for self-employed persons or was granted maternity benefits in cash or carried out military service are not included in this number of calendar months.
The maximum (annual) assessment base for self-employed persons for pension insurance premiums and the contribution to the state employment policy is 72 times the average wage. This assessment base for self-employed persons is not reduced by the proportional part.
Sickness Insurance Premiums
Sickness insurance scheme premiums for self-employed persons are a percentage of the monthly base and are due from the first to the last day of the calendar month for to which the premium is paid.
The assessment base for sickness insurance premiums for self-employed persons is a monthly base which the self-employed person determines him/herself. The monthly base once set by the self-employed person, on the basis of which sickness insurance premiums have been paid, cannot be subsequently changed and the actual payment of sickness insurance premiums is deemed to be the setting of the monthly base.
However, this monthly base cannot be lower than twice the decisive amount determined in accordance with the sickness insurance legislation for participating in the sickness insurance scheme for employees. The minimum assessment base of self-employed persons for sickness insurance premiums is CZK 7.000,-.